Why Should I Consider Investing in an Oil & Gas partnership?

Excellent question!  Here is a candid explanation of what oil & gas partnerships are, what types of investors may benefit from them, and what to look for in the offering company.  It also explains why, if you are the type of investor who wants to discuss them further, you should contact Fusion Resources.

Oil & gas partnerships have been around for years and have a checkered past.  Historically, disreputable promoters, periodic boom and bust in oil prices and the public’s misunderstanding of the industry/risks have all contributed to investor skepticism.

Today’s oil & gas partnerships have come a long way in overcoming these negatives.  Yes, risks still exist (as in every business opportunity) but they are more than offset by potential returns.  Your challenge as an investor is selecting the right company to partner with.

Only you can decide if oil & gas partnerships are right for you.  You should have a better idea after reading this introduction.  If the answer is yes, please give us a call.  We will be pleased to discuss the details with you.

What is an Oil & Gas Partnership?

In simple terms, it is a partner owned business entity that actively participates in oil & gas production by drilling wells.  If all goes “according to plan” (producing well), on top of deducting the entire investment.  In the “worst case scenario” (dry hole), they can write off most of the investment against income for tax purposes.

What type of Investors might be Interested?

Thousands of individuals each year invest in oil & gas partnerships.  In general, they are:

• Mature and financially successful persons (net worth exceeding $1 million or annual income greater than $200 thousand).
• Want to increase net worth and monthly income more than what is offered by stocks and bonds.
• Able to take advantage of significant tax write-offs.
• Ready to allocate a portion of their assets to oil & gas partnerships.
• Knows the risk/reward benefits by building over time a portfolio of oil & gas projects with a great independent oil & gas company.

How do Partnerships fit in today’s Oil & Gas Industry?

Here we are talking about the partnerships offered by the independent U.S. oil & gas companies.  They are well suited to take advantage of opportunities overlooked by the “major oil companies”.  Here are some reasons:

• New Technologies – Technological developments in exploration, drilling and production technologies (such as 3-D geological imaging, horizontal drilling and fracking) have greatly improved the economics for smaller companies to produce in proved reserves overlooked by the “major oil companies”.
• Consumption Trends – Developed and developing countries will continue to use more oil & gas for decades to come.  Conservation and alternate energy will not stop it.
• National Politics – Issues such as pipeline construction, fracking and railroad tanker transportation are sometimes in the news.  Washington, however realizes the importance of maintaining a strong, resilient national oil & gas production infrastructure epitomized by our independent oil & gas companies.
• International Politics – OPEC influence and Middle East instability are mitigated by our independent oil & gas companies.  Oil & gas partnerships can be profitable whether oil prices go up or down.

How do You find a great oil & gas partnership Company?

If you want to find a great company, you must get answers to these questions:

• Experience and history – Does the company have a track record of success in both “boom” and “bust” oil price cycles?  Has it been in business long enough to have industry expertise and contacts?
• Expertise in exploration and production – Does the company know how to find and drill successful wells in overlooked oil & gas reserves via new petroleum geology analysis, seismic and fracking technologies?  Can it operate wells via improved well workover and reservoir engineering technologies?
• Viable business model – Does the company have a business model that can make money in both high price and low price oil scenarios?   Does it have projects dealing with new production (in-fill) as well as workover?
• Top Management – Are the top managers “movers and shakers” who can make things happen no matter what obstacles may arise?  Do they have top flight geologists, petroleum engineers and business advisors that contribute to successful wells?   Do they keep an eye on short-term and long-term factors affecting oil & gas demand and price?  Are they highly ethical?  Are their interests aligned with their investors because they have put their own money into the partnership projects?

Of course any company that contacts you will tell you they have “all the right stuff”.  Perhaps they do, but you must confirm this with your own “due diligence”.

Introducing Fusion Resources LLC

The only way to invest is by building a successful, mutually beneficial long-term relationship with a great independent oil & gas company.   And this is where Fusion Resources comes into play.   Many investors have built a profitable long-term business relationship with us because we have worked hard earning them money.  We can do the same for you.

For starters, here is the link to our “Due Diligence Checklist” Click to link to Checklist

Wrapping Up

We hope you now have a much better understanding of oil & gas partnerships, and why they might fit your investment needs. There is more you will want to know, so your next step is to contact us.